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Newspapers' market shares and the theory of the circulation spiral

  • Gabszewicz, J.J.
  • Garella, P.G.
  • Sonnac, N.

We consider a model of daily newspapers' competition to test the validity of the so called "theory of the circulation spiral". According to it, the interaction between the newspapers and the advertising markets drives the newspaper with the smaller readership into a vicious circle, finally leading it to death. In a model with two newspapers, we show that, contrary to this conjecture, the dynamics envisaged by the proposers of the theory, does not always lead to the elimination of one of them.

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Article provided by Elsevier in its journal Information Economics and Policy.

Volume (Year): 19 (2007)
Issue (Month): 3-4 (October)
Pages: 405-413

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Handle: RePEc:eee:iepoli:v:19:y:2007:i:3-4:p:405-413
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/505549

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  1. GABSZEWICZ, Jean & LAUSSEL, Didier & SONNAC, Nathalie, 2002. "Attitudes toward advertising and price competition in the press industry," CORE Discussion Papers 2002026, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  2. Dertouzos, James N & Trautman, William B, 1990. "Economic Effects of Media Concentration: Estimates from a Model of the Newspaper Firm," Journal of Industrial Economics, Wiley Blackwell, vol. 39(1), pages 1-14, September.
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